THE GREAT DEPRESSION BEGINS

1. THE GREAT DEPRESSION BEGINS Photos by photographer Dorothea Lange

2. Harding • 1921-1923 • “Return to Normalcy” after WWI • Easy going, won Presidency overwhelmingly • Teapot Dome Scandal • Considered weakest of all Presidents by some • Coolidge • Took over when Harding died • Believed in minimal gov’t “Silent Cal” • Only ran for one term despite being popular

3. THE NATION’S SICK ECONOMY (Late 1920’s) At the end of the 1920’s, serious problems threatened the economy while Important industries struggled, including: • Agriculture • Railroads • Textiles • Steel • Mining • Lumber • Automobiles • Housing • Household goods

4. FARMERS STRUGGLE • No industry suffered as much as agriculture • During World War I European demand for American crops soared • After the war demand plummeted • Farmers increased production sending prices further downward Photo by Dorothea Lange

5. CONSUMER SPENDING DOWN • By the late 1920s, American consumers were buying less • Rising prices, stagnant wages and overbuying on credit were to blame • Most people did not have the money to buy the flood of goods factories produced

6. GAP BETWEEN RICH & POOR • The gap between rich and poor widened • The wealthiest 1% saw their income rise 75% • The rest of the population saw an increase of only 9% • More than 70% of American families below poverty level - earned less than $2500 per year Photo by Dorothea Lange

7. Herbert Hoover Wins 1928 Election • Republican Herbert Hoover ran against Democrat Alfred E. Smith Hoover emphasized years of prosperity under Republican administrations • Hoover won an overwhelming victory in the1928 election

9. Young Hoover supporter in 1928

10. THE STOCK MARKET • By 1929, many Americans were invested in the Stock Market • The Stock Market had become the most visible symbol of a prosperous American economy

11. STOCK PRICES RISE THROUGH THE 1920s • Through most of the 1920s, stock prices rose steadily • By 1929, 4 million Americans owned stocks New York Stock Exchange

12. SEEDS OF TROUBLE • By the late 1920s, problems with the economy emerged • Speculation:Too many Americans were engaged in speculation – buying stocks & bonds hoping for a quick profit • Margin:Americans were buying “on margin” – paying a small percentage of a stock’s price as a downpayment and borrowing the rest The Stock Market’s bubble was about to break

13. THE 1929 CRASH • On October 24, the market took a plunge . . .the worst was yet to come • On October 29, now known as Black Tuesday, the bottom fell out • 16.4 million shares were sold that day • People who had bought on margin (credit) were stuck with huge debts

14. By mid-November, investors had lost about $30 billion

16. THE GREAT DEPRESSION • The Stock Market crash signaled the beginning of the Great Depression • The Great Depression is the period from 1929 – 1940 in which the economy sunk and unemployment skyrocketed Alabama family, 1938 Photo by Walter Evans

17. FINANCIAL COLLAPSE • After the crash, many Americans panicked and withdrew their money from banks • Banks had invested in the Stock Market and lost money • In 1929- 600 banks fail • By 1933 – 11,000 of the 25,000 banks nationwide had collapsed Bank run 1929, Los Angeles

18. GNP DROPS, UNEMPLOYMENT SOARS • Between 1928-1932, 90,000 businesses went bankrupt • Unemployment leaped from 3% in 1929 to 25% in 1933

19. HARDSHIPS DURING DEPRESSION • The Great Depression brought hardship, homelessness, and hunger to millions • Across the country, people lost their jobs, and their homes • Some built makeshift shacks out of scrap material • shantytowns called Hoovervilles sprung up

20. SOUP KITCHENS • One of the common features of urban areas during the era were soup kitchens and bread lines • Soup kitchens and bread lines offered free or low-cost food for people Unemployed men wait in line for food – this particular soup kitchen was sponsored by Al Capone

21. "Brother, Can You Spare a Dime," • They used to tell me I was building a dream, and so I followed the mob, • When there was earth to plow, or guns to bear, I was always there right on the job. • They used to tell me I was building a dream, with peace and glory ahead, • Why should I be standing in line, just waiting for bread? • Once I built a railroad, I made it run, made it race against time. • Once I built a railroad; now it's done. Brother, can you spare a dime? • Once I built a tower, up to the sun, brick, and rivet, and lime; • Once I built a tower, now it's done. Brother, can you spare a dime? • Once in khaki suits, gee we looked swell, • Full of that Yankee Doodly Dum, • Half a million boots went slogging through Hell, • And I was the kid with the drum! • Say, don't you remember, they called me Al; it was Al all the time. • Why don't you remember, I'm your pal? Buddy, can you spare a dime? • Once in khaki suits, gee we looked swell, • Full of that Yankee Doodly Dum, • Half a million boots went slogging through Hell, • And I was the kid with the drum! • Say, don't you remember, they called me Al; it was Al all the time. • Say, don't you remember, I'm your pal? Buddy, can you spare a dime?

22. CONDITIONS FOR MINORITIES • Unemployment was the highest among minorities and their pay was the lowest • Increased violence (24 lynchings in 1933 alone)marred the 1930s • Many Mexicans were “encouraged” to return to their homeland As conditions deteriorated, violence against blacks increased

23. RURAL LIFE DURING THE DEPRESSION • While the Depression was difficult for everyone, farmers did have one advantage; they could grow food for their families • Thousands of farmers, however, lost their land Between 1929-1932 almost ½ million farmers lost their land

24. THE DUST BOWL • A severe drought gripped the Great Plains in the early 1930s • Wind scattered the topsoil, exposing sand and grit Kansas Farmer, 1933

26. Dust storm approaching Stratford, Texas - 1934

27. Storm approaching Elkhart, Kansas in 1937

28. Dust buried cars and wagons in South Dakota in 1936

29. HARDEST HIT REGIONS • Kansas, Oklahoma, Texas, New Mexico, and Colorado were the hardest hit regions during the Dust Bowl • Many farmers migrated to California and other Pacific Coast states Boy covers his mouth to avoid dust, 1935

30. Photographer Dorothea Lange captures a family headed west to escape the dust storms

31. HOBOES TRAVEL AMERICA • The 1930s created the term “hoboes” to describe poor drifters • 300,000 hoboes hitched rides around the country on trains and slept under bridges (thousands were teenagers) • Injuries and death was common on railroad property; over 50,000 people were hurt or killed

32. Effects Of The Depression • Suicide rate rose more than 30% between 1928-1932 • Alcoholism rose sharply in urban areas • Three times as many people were admitted to state mental hospitals as in normal times • Many people developed habits of savings & thriftiness

33. SECTION 3: HOOVER STRUGGLES WITH THE DEPRESSION • After the stock market crash, President Hoover tried to reassure Americans • He said, “Any lack of confidence in the economic future . . . Is foolish” • He recommended business as usual • Suggested people help other people, not the Federal Government’s job Herbert Hoover

34. HOOVER’S PHILOSOPHY • Hoover was not quick to react to the depression • He believed in “rugged individualism” – the idea that people succeed through their own efforts • People should take care of themselves, not depend on governmental hand-outs • He said people should “pull themselves up by their bootstraps” Hoover believed it was the individuals job to take care of themselves, not the governments

35. HOOVER’S SUCCESSFUL DAM PROJECT • Hoover successfully organized and authorized the construction of the Boulder Dam (Now called the Hoover Dam) • The $700 million project was the world’s tallest dam (726 feet) and the second largest (1,244 feet long) • The dam currently provides electricity, flood control and water for 7 western states

36. Are there Any dam questions?

37. BONUS ARMY • A 1932 incident further damaged Hoover’s image • That spring about 15,000 World War I vets arrived in Washington to support a bill that would have authorized Congress to pay a bonus to WWI vets immediately • The bonus was scheduled to be paid in 1945 --- The Army vets wanted it NOW

38. BONUS ARMY TURNED DOWN • Hoover called the Bonus marchers, “Communists and criminals” • On June 17, 1932 the Senate voted down the Putnam Bill Thousands of Bonus Army soldiers protest – Spring 1932

39. BONUS MARCHERS CLASH WITH SOLDIERS • Hoover told the Bonus marchers to go home– most did • 2,000 refused to leave • Hoover sent a force of 1,000 soldiers under the command of General Douglas MacArthur and his aide Dwight Eisenhower

40. AMERICANS SHOCKED AT TREATMENT OF WWI VETS • On Hoover’s orders, the military gassed more than 1,000 marchers, including an 11-month old baby, who died • Two vets were shot and scores injured • Americans were outraged and once again, Hoover’s image suffered

41. Hoover had little chance to be re-elected in 1932

42. Franklin Delano Roosevelt Elected in 1932

43. 1932 Electoral College Votes

44. First order of Business? Restoring Public’s Confidence in Banks 1. Declared a banking crisis a. Closed ALL banks for 4 day“Bank Holiday” (so people would stop trying to withdraw money and banks to resupply) b. Emergency Banking Relief Act- Passed by Congress, allowed only stable banks to reopen, the rest remained closed 2. Fireside Chat- told Americans by radio that the good banks were safer than $$ in a mattress

45. Roosevelt’s 3 R’s: 1. Relief (help the unemployed) 2. Recovery (help the farmers and industry) 3.Reform (help avoid a Depression in the future)

47. 1. Relief – help the unemployed • CCC = Civilian Conservation Corps • PWA = Public Works Administration • TVA = Tennessee Valley Authority • WPA = Works Project Administration

48. Works Progress Administration

49. WPA Murals

50. 2. Recovery – helping farmers and Industry bounce back • NRA = National Recovery Act • AAA = Agricultural Adjustment Administration